Sony Group Drops 3.03% Amid CIS Market Challenges

On June 23, 2025, Sony Group's stock dropped by 3.03% in pre-market trading, reflecting the challenges faced by the company in the competitive CIS market.

Sony Group's recent financial report for the 2024 fiscal year highlighted significant challenges in the CIS market. The company's main clients' sales fell short of expectations, and intense competition from Chinese high-end CIS manufacturers led to stagnant market share. This has forced Sony to delay its target of achieving a 60% market share by 2025. The report underscores the shifting dynamics in the CIS market, where Chinese companies like Welly, SIT, and GCO have made significant strides, challenging the dominance of traditional leaders like Sony and Samsung.

Despite these setbacks, Sony remains committed to its CIS business. The company has expanded its production capacity in Thailand and is collaborating with JASM, a joint venture with TSMC, to enhance its manufacturing capabilities. Additionally, Sony is investing in new technologies and strategic partnerships to maintain its competitive edge. The company's CFO, Kazuo Hirai, emphasized that Sony's goal of achieving a 60% market share remains unchanged, despite the delay. Sony's long-term strategy includes focusing on high-end markets and leveraging its technological advantages to drive growth.

Sony's efforts to innovate and adapt to market changes are evident in its recent announcements. The company has outlined a five-year plan to enhance the performance of its image sensors, focusing on key areas such as sensitivity, dynamic range, resolution, readout speed, and power consumption. This plan includes the development of advanced manufacturing technologies and the integration of multi-layer stacking techniques to improve sensor performance. Sony's investments in these areas are expected to drive growth in its CIS business, with a projected CAGR of 9% from 2024 to 2030.